Compound Interest
31 solved SSC CGL Quantitative Aptitude previous year questions on Compound Interest, each with the correct answer and a full explanation.
Q1
If compound interest received on a certain amount in the 3rd year is Rs. 1,240, what will be the compound interest (in Rs) for the 4th year on the same amount at 9% rate of interest?
✓ Correct answer: c) 1351.6
ExplanationGiven, Compound Interest (C.I.) in 3rd year = Rs 1240 Rate = 9% We know, C.I for 4th year = C.I in 3rd year = Hence, Option C is the correct answer.
Q2
What is the difference (in Rs.) between the compound interests on Rs. 4000 for 1 year at 12% per annum compounded yearly and half- yearly?
✓ Correct answer: a) 14.4
ExplanationGiven, Principal (P) = Rs 4000 If interest is compounded annually Rate = 12 % and Time = 1 year Amount = Compound Interest = Amount – Principal = 4480 – 4000 = Rs. 480 Now, if interest is compounded half-yearly Rate = % and Time = 2 half-year Amount = Compound Interest = 4494.4 – 4000 = Rs. 494.4 Required Difference = 494.4 – 480 = Rs. 14.4 Hence, Option A is the correct answer.
Q3
The compound interest earned in two years at 15% per annum is Rs 20640 . What is the sum invested (in Rs)?
✓ Correct answer: a) 64000
ExplanationGiven, Rate of Interest (R) = 15 % Compound Interest(C.I) = Rs 20640 Time (T) = 2 years Let, sum invested (Principal) = Rs P We know P = 64000 Hence, Sum invested = Rs 64000 Hence, Option A is the correct answer.
Q4
What is the compound interest (in Rs) for 1 year on a sum of Rs 20000 at the rate of 40% per annum compounding half yearly?
✓ Correct answer: d) 8800
ExplanationLet P be the principal and the rate of interest be R% P = Rs 20000; R= 40% and Time = 1 years = 2 half yearly Compound interest Hence, Option D is the correct answer.
Q5
If compound interest received on a certain amount in the 2nd year is Rs 1200, what will be the compound interest (in Rs) for the 4th year on the same amount at 10% rate of interest?
✓ Correct answer: a) 1452
ExplanationLet total amount = Rs. a and Rate = 10 % (Given) C.I in 2nd year = C.I in 4th year = Compound interest in the fourth year = 10909.1 Compound interest in the fourth year = 1452 rupees Hence, Option A is the correct answer.
Q6
A sum amounts to Rs18,600 after 3 years and to Rs 27,900 after 6 years, at a certain rate percent p.a., when the interest is compounded annually. The sum is:
✓ Correct answer: b) Rs 12,400
ExplanationA sum amounts to Rs 18,600 after 3 years and to Rs 27,900 after 6 years, at a certain rate percent p.a. 1st case : A = P 18,600 = P ................(1) 2nd case : 27,900 = P ..............(2) eq.(2) / eq.(1) Hence, Option B is the correct answer.
Q7
The difference between the compound interest and simple interest on ₹ x at 12 % per annum for 2 years is ₹18. What is the value of x ?
✓ Correct answer: a) 1,250
ExplanationThe difference between compound interest and simple interest for two years is Pr / 100 .The difference between the compound interest and simple interest on ₹ x at 12 % per annum for 2 years is ₹18. As per the question, x = ₹ 1,250 Hence, Option A is the correct answer.
Q8
The difference between the compound interest and simple interest on ₹ x at 7.5 % per annum for 2 years is ₹45. What is the value of x?
✓ Correct answer: b) 8,000
ExplanationPrincipal (P) = Rs.x Difference = Rs.45 Rate (r) = 7.5% The difference between compound interest and simple interest for 2 years, By the using of formula, Difference = x. 45 = x . x = Rs.8,000 Hence, Option B is the correct answer.
Q9
A sum of amounts to in 3 years at a certain rate percent per annum, interest compounded annually. What will amount of the same sum to in 2 years at the same rate on compound interest?
✓ Correct answer: c) ₹ 17,280
ExplanationPrincipal (P) = Rs.12,000 , Amount (A) = Rs.20,736 , Time(N) = 3 years , Rate (R) = ?By using the formula, The same sum in 2 years at the same rate on compound interest, = Rs.17,280 Hence, Option C is the correct answer.
Q10
A sum of Rs.15,000 is lent at 16 % p.a. compound interest. What is the difference between the compound interest for the second year and the third year?
✓ Correct answer: b) ₹ 445.44
ExplanationP = Rs. 15,000, r = 16%, T = 2 years Compound interest only for 2nd year ⇒ 15000 × (16/100) = 2400 ⇒ 2400 × (16/100) = 384 Compound interest only for 2nd year = 2400 + 384 = Rs. 2784 Compound interest only for 3rd year ⇒ 15000 × (16/100) = 2400 × 1 = 2400 ⇒ 2400 × (16/100) = 384 × 2 = 768 ⇒ 384 × (16/100) = 61.44 Compound interest of 3 years = 2400 + 768 + 61.44 = 3,229.44 ∴ Required difference = 3,229.44 – 2,784 = Rs. 445.44 Hence, Option B is the correct answer.
Q11
The difference between the compound interest and simple interest on ₹ x at 12 % per annum for 2 years is ₹ 43.20. What is the value of x?
✓ Correct answer: c) 3,000
ExplanationThe difference between the compound interest and simple interest on ₹ x at 12 % per annum for 2 years is ₹ 43.20. The difference between the compound interest and simple interest for two years is PR / 100 .Here, P=x As per the question, x = 3000 Hence, Option C is the correct answer.
Q12
The difference between compound interest and simple interest on ₹x at 15% per annum for 2 years is ₹9. What is the value of x?
✓ Correct answer: b) 400
ExplanationPrincipal(P)=₹ x Rate of interest(r)=15% Difference between the compound interest and simple interest for 2 years is ₹ 9 .Hence, Option B is the correct answer.
Q13
The difference between the compound interest and simple interest on ₹ x at 7 % per annum for 2 years is ₹ 24.50. What is the value of x ?
✓ Correct answer: c) 5000
ExplanationPrincipal(P)=₹ x Rate of interest(r)=7% Difference between the compound interest and simple interest for 2 years is ₹ 24.50 .Hence, Option C is the correct answer.
Q14
The difference between the compound interest and simple interest on ₹ x at 11 % per annum for 2 years is ₹ 60.50. What is the value of x ?
✓ Correct answer: c) 5000
ExplanationWe know that, Difference between the compound interest and simple interest for 2 years formula.Difference= Given, r = 11%, time = 2 years and P = x According to question- Hence, Option C is the correct answer.
Q15
The compound interest on a certain sum at 10% p.a. for 2 years is ₹ 1,201.60, interest compounded yearly. The sum is:
✓ Correct answer: c) ₹ 4,800
ExplanationRate of interest for 2 year = 10% Rate of interest for year = % Time = 2 years CI = Rs 1201.60 A = P 1201.60 + P = P P = Rs 4800 Hence, Option C is the correct answer.
Q16
The simple interest on a certain sum at the end of three years at 5 % is ₹ 1,200. The compound interest on the same sum for the same period at the same rate is (interest compounded yearly):
✓ Correct answer: b) ₹ 1,261
ExplanationSimple interest for 3 years = Rs. 1200 Rate = 5% Simple interest for 1 year Rs. 400 Now, Applying ratio method CI for 3 years Hence, the required answer is .
Q17
The simple interest on a sum of ₹ 50,000 at the end of two years is ₹ 4,000. What would be the compound interest on the same sum at the same rate for the same period?
✓ Correct answer: b) ₹ 4,080
ExplanationGiven, Simple Interest (S.I) Time years Rate of Interest We know, Now, Hence, the correct option is B.
Q18
A sum of ₹ 3125 amounts to ₹ 3515.20 in 3 years at x% p.a., interest being compounded yearly. What will be the simple interest (in ₹) on the same sum and for the same time at (x+2)% p.a.?
✓ Correct answer: a) 562.50
ExplanationWe know that, Amount = According to the question, 3515.20 = x = 4% Therefore, required simple interest = = = Rs. 562.5 Hence, Option A is the correct answer.
Q19
What is the compound interest (in ₹) on a sum of ₹ 8192 for 1 years at 15% per annum, if interest is compounded 5-monthly?
✓ Correct answer: d) 1634
ExplanationPrincipal = Rs. 8192, Rate = 15% p.a. or 15% × = 6.25% per 5 months and Time = years or = 3 five-monthly periods Compound interest = Principal × (1 + )T – Principal = 8192 × (1 + 6.25%)3 – 8192 = 8192 × (1.0625)3 – 8192 = 9826 – 8192 = Rs. 1634 Hence, Option D is the correct answer.
Q20
What will be the amount of Rs 32000 at 20% per annum for 9 months, compounded quarterly?
✓ Correct answer: a) 37044
ExplanationRate = 20% per annum = 20%/4 = 5% quarterly Time = 9 months = 3 quarter Hence, Option A is the correct answer.
Q21
A sum of ₹ 18,000 becomes ₹ 21,780 after 2 years of compound interest compounded annually. What will be the compound interest (in ₹) on the same sum for the same period if the rate of interest increases by 5% ?
✓ Correct answer: a) 5,805
ExplanationFor CI, Amount = Principle ( 1 + )T r = 10% Now for New compound interest, r = 15% Amount = 18000 (1 + )2 Amount = Rs. 23805 CI = 23805 – 18000 = Rs. 5805 Hence, Option C is the correct answer.
Q22
The compound interest on a certain sum of money at 21% p.a. for 2 years is ₹ 11,138.40, when interest being compounded yearly. The total amount received (in ₹) after 2 years is:
✓ Correct answer: a) 35,138.40
ExplanationLet the sum invested be Rs. X. We know that, CI= According to the question, Amount received after 2 years = 24000 + 11138.40 = Rs. 35138.40 Hence, option A is the correct answer.
Q23
What is the compound interest (in ₹) on a sum of (₹ 62,500) for 2 years at 12 % p.a., if the interest is compounded 8 monthly?
✓ Correct answer: b) 16,232
ExplanationFor 8-monthly, 3 periods in 2 years So, total amount = = 78732 Compound interest = 78732 – 62500 =Rs.16232 Hence, the correct answer is (B).
Q24
A sum of money was borrowed and paid back in two equal annual instalments of ₹ 980, allowing 4 % compound interest. The sum (in ₹, to the nearest tens) borrowed was:
✓ Correct answer: a) 1,850
ExplanationA sum of money was borrowed and paid back in two equal annual installments of Rs. 980, allowing 4% compound interest.Borrowed sum = Here, x = each installment R = Rate Now, Borrowed sum = Hence, Option A is the correct answer.
Q25
Joseph deposited a total of Rs.52,500 in a bank in the names of his two daughters aged 15 years and 16 years in such a way that they would get equal amounts when they become 18 years old. If the bank gives 10% compound interest compounded annually, then what is the amount (in ₹) that Joseph had deposited in the name of his younger daughter?
✓ Correct answer: c) 25000
ExplanationJoseph deposited a total of Rs.52,500 in bank in the names of his two daughters aged 15 years and 16 years in such a way that they would get equal amounts when they become 18 years old.Let amount deposited in the name of his younger daughter = Rs. x Amount deposited in the name of his elder daughter = Rs. (52500 - x) Rate of interest = 10% per annum According to the question: Hence, Amount deposited in the name of his younger daughter = Rs. 25000 Hence, Option C is the correct answer.
Q26
The difference between compound interest compounded annually and simple interest on a certain sum at a rate of 15 % per annum for 2 years is ₹ 1,944. Find the compound interest compounded annually (in ₹) on the same sum for the same period at a rate of 10 % per annum.
✓ Correct answer: b) 18,144
ExplanationRate = 15% p.a. Time = 2 years Difference between simple interest and compound interest for 2 years = Rs. 1944 Difference between simple interest and compound interest for 2 years = ATQ, Principal = Now, Rate = 10% p.a. CI = Hence, Option B is the correct answer.
Q27
What is the compound interest on a sum of ₹ 25,000 after three years at a rate of 12 per cent per annum interest compounded yearly?
✓ Correct answer: a) ₹ 10,123.20
ExplanationWe know that, Compound interest= In which, Principal(P)= ₹25000 Rate of interest(R)= 12% Time taken (n)= 3 year Therefore, The required compound interest, Hence, Option A is the correct answer.
Q28
Rajnish borrowed ₹1,500 from a bank and repaid the entire amount with interest in two equal annual instalments, the first instalment being paid a year after Rajnish borrowed from the bank. If the rate of interest was 40% per annum, compounded annually, then what was the value (in ₹) of each instalment paid by Rajnish?
✓ Correct answer: c) 1225
ExplanationWe know that, In which, Principal Borrowed(P)= ₹1,500 x= Annual Installment R= Rate of Interest (40%) N=Number of instalments According to the question, Hence, Option C is the correct answer.
Q29
Find the amount (integral value only) if a sum of ₹6,500 is being borrowed at 10% interest per annum for 2 years if interest is compounded half-yearly
✓ Correct answer: b) ₹ 7,900
ExplanationWe know that, A= in which, A= amount Principal(P)= ₹ 6,500 Rate of interest(R)= Time(n) = = 4 Therefore, the compound interest, Hence, Option B is the correct answer.
Q30
If interest be compounded half-yearly, then find the compound interest on ₹8,000 at the rate of 20% per annum for 1 year.
✓ Correct answer: d) ₹1,680
ExplanationWe know that, Principal (P)= ₹8,000 Interest rate(R)= Time (T)= year We know that, Compound interest= Hence, Option D is the correct answer.
Q31
The difference in compound interest on a certain sum at 10 % p.a. for one year, when the interest is compounded half yearly and yearly, is ₹ 88.80. What is the simple interest on the same sum for 1 years at the same rate?
✓ Correct answer: d) ₹ 5,920
ExplanationLet total sum = 100% Rate of Interest for 1 year = 10% Rate of Interest for 6 months = 5% Rate of Interest when compounded half yearly = Difference of Rate of Interest = 10.25 – 10 = 0.25 % According to question Time = years Simple Interest at 10 % = Hence, the correct answer is D.
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